You may have heard of Ethereum, a new blockchain based crypto currency similar to bitcoin yet more superior in every way.
What makes ethereum better than bitcoin is a little feature known as Smart Contracts. Because of these so called Smart Contracts, Ethereum has got a lot of attention from companies and governments alike .
What is Ethereum?
Ethereum is the name of the blockchain technology behind the crypto-currency token called Ether. Although the ether is the official name of the token, many simply call it Ethereum.
Without getting too technical about how it all works, just think of it as a new virtual currency. There are hundreds of these so called virtual tokens out there. But they are all based on the same basic principle.
And this principle is that instead of cash kept in your wallet, virtual currency is kept in a cloud of peer to peer computer connections.
If this sounds scary, then it’s not because you’re getting too old. It is scary. Hackers have been able to penetrate these systems and have stolen millions, although in most cases they have been unable to actually withdraw any actual money.
Should I buy Ethereum?
Yes, I personally believe we all should. But don’t let me talk you into it with this one article which is designed to explain only the very basics of Ethereum.
The good thing about Litecoin, is that it’s only about 30 bucks at this current time, meaning it has a lot of potential upswing.
The bad thing about Litecoin, is that it’s very similar to bitcoin meaning it doesn’t have the features Ethereum has, such as Smart Contracts.
The Smart Contracts feature is why so many companies such as Goldman Sachs and countries are looking to Ethereum for their next generation offerings. Entire business models can and are currently being built based on these Smart Contracts.
If you are interested in trading ether, Bitcoin or Litecoin, make sure to check out Coinbase. One problem with Coinbase is that it currently does not allow limit orders, which are my favorite way to trade stocks. But Coinbase does have the best UI and provides the most simple way to get into virtual currency trading. And their fees are not so bad, but they do depend on where you live.
You don’t really need to know all the technical specifics of how crypto-currencies such as Ethereum work. And unless you’re a programmer and want to learn how to create Ethereum Smart Contracts, I wouldn’t bother learning the technical details. You just need to know that it is possible to make a lot of money with Ethereum. And it is also possible to lose money to if you’re not careful. Just like the stock market, the basic principle is, buy low and sell high.